P.M. BRIEFING : Slower German Economy Seen
Five leading German economic research institutes said in their annual report today that Germany’s economic growth will slow in the next years, burdened by the economic costs of German unification.
The report, sharply contradicting government estimates, said growth in Germany’s gross national product will slip to a worse-than-expected 1.5% in 1991 from an annual average of 2% to 3%, while unemployment will jump to 10% from an average of 6% this year.
It said that production and demand in the former West Germany will continue to rise but that higher spending to rebuild the economy in the former East Germany will dampen the effect.
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